E-business - what is it and how to run it effectively?

Service Business

Each of us dreams of becoming our own boss, not obeying anyone's orders, not being subordinate to anyone, being able to work only for ourselves and still earn good money on it. It turns out that in the era of the omnipresent Internet, nothing is impossible, because it is enough to start your own e-business.

Autonomous individuals who want to break free from the clutches of ruthless corporate machines are faced with a difficult choice of further path - establishing a traditional business or an Internet company. Taking into account the fact that the Internet has now penetrated into virtually every area of ​​life, at the beginning it is worth choosing e-business, which has recently broken records of popularity. There are more and more companies on the market that exist only on the Internet. And I think one can safely go so far as to say that the Internet is the undisputed future of business.

What is e-business?

E-business, i.e. electronic business, was implemented in 1995 by the IBM concern. This business model is based on broadly understood ICT solutions, with particular emphasis on internet applications. It includes: exchange of information between entrepreneurs, producers, distributors and recipients of products and services, signing contracts, concluding contracts, smooth transmission of documents, conducting teleconferences, acquiring new contacts, as well as customers, searching for information about new products on the market, but also about competition. A number of other terms are related to e-business, for example: e-commerce, i.e. electronic commerce, e-enterprise, i.e. electronic enterprises, e-economy - electronic economy, e-society - electronic society or e-government - electronic government and entering into more detailed nomenclature: e-banking, e-learning.

The domination of e-business over its traditional form

When setting up your own e-business, you do not need to rent office space, you can do your work remotely from home.

Internet advertising costs are much lower. You don't waste money printing and distributing your flyers. When running e-business, you advertise through e-mails, blog articles, your own website and positioning. E-business is not just about carrying out a transaction, it encompasses all the factors that lead to it. One such factor is Internet marketing, which uses the Internet for advertising purposes leading to the sale of goods or services. On the other hand, thanks to e-PR, i.e. electronic Public Relations, you can freely shape your company's image on the web and communicate with the media.

The costs of employing employees are also lower, as usually the person who starts e-business runs it on their own. When an Internet company develops and it becomes necessary to hire a helper, the cost of its maintenance is lower than in a traditional business, because such a helper can also perform his work remotely. E-business owners most often hire employees under a contract of mandate or a contract for specific work.

Goods, in the case of online stores, are available 24 hours a day.

In e-business, the sales market covers the whole world, while in traditional companies it is often limited to the immediate surroundings (e.g. neighborhood shops, shopping centers).

Contact with the company and contractors is usually free and immediate (e.g. e-mails, instant messaging, social networks such as Facebook).

Online store owners usually do not incur shipping costs, as they are paid by the buyer.

First steps

An absolute necessity is the website, which can also be the so-called e-shop, i.e. an online store.

Maciej Dutko in the book Internet domains - briefly and to the point he applied the perfect comparison of domains to places of residence in the real world. If a company has a good Internet domain, it becomes tantamount to locating its headquarters in the city center. However, not everyone can afford a house in a residential area. There are more and more domain developers on the internet market, so you should be familiar with the offers. A good internet domain should be unique - short, easy to remember and pronounce. In addition, it should evoke immediate associations with a given company, it is very important that the words contained in it come from the native language. When creating domains, you should definitely show creativity and knowledge of the rules governing the Internet. You have to learn to see the nuances between domains and take advantage of their weaknesses. Let's say that an internet user makes a mistake in the address of the target website and then immediately goes to your company's website.

The internet domain is the company's showcase. She sends the potential customer to the website, which is an indicator of professionalism. Thanks to it, a given company can advertise itself and improve contact with the client. For this purpose, you need to register the website address through an authorized company and acquire space on the server (so-called hosting) to maintain it and show it on the web. It is worth paying attention to promotions, e.g. domain plus hosting at an attractive price. The company then selects a free address, a matching extension, and pays for the domain and server lifetime. Therefore, when creating an enterprise, remember to register a domain, thanks to which you will create an e-business card of your company and show professionalism. Then create your own newsletter, newsletter, autoresponder, mailing list, marketing, copywriting. Run a corporate blog where you will post articles about your business. Deal with the positioning of the website, studying the traffic that reaches it and drawing specific conclusions on this basis.

E-business - what are its advantages and disadvantages?

Like any form of business, e-business has its pros and cons. When deciding to run an Internet company, it is worth settling all the pros and cons.

Disadvantages of e-business

  • long period of building trust among customers - Internet users mainly make choices online based on the opinions and comments of other users. When opening a new website, we cannot provide it to customers, therefore the process of gaining trust may be significantly extended,
  • strong competition - the internet market is very attractive for entrepreneurs, therefore competition in almost every industry is constantly increasing. To stand out from the crowd, you need to be very professional and inventive,
  • constantly increasing customer requirements and new trends - the Internet network is the fastest-growing media, so you should keep an eye on the changes and trends that are coming. Internet users require the highest level of service, and for every little mistake they can assess our actions very negatively.

Advantages of e-business

  • no territorial restrictions - anyone can become our client on the Internet, regardless of where they live. Thanks to this, we can constantly expand the range of our activities and develop on international markets.
  • high flexibility of activities - by running a business on the Internet, you can quickly change your business profile or method of operation. It is not that simple when we have a standard company with a stationary branch and employed employees.
  • possibility of starting without a lot of capital - when starting a new e-business, we do not need to have large financial outlays. First of all, what counts is the idea and knowledge about the functioning of internet businesses.

In conclusion, first of all, focus on what you know well. Create a company profile that will be supported by your experience. Gather as much information as possible on e-business, consult specialists, and only when you feel that you already have basic knowledge - create your own Internet company.